An auto spare parts store business in South Africa is very lucrative and profitable. Car ownership is increasing significantly in South Africa every year. A lot of South Africans are purchasing new and used cars everyday, and others have existing vehicles which also need to be maintained. There are over 12 million registered cars in South Africa, this is according to data from National Administration Traffic Information System (eNatis). Every year, more than 500 000 new vehicles are sold in South Africa. This is according to data from the National Association of Automobile Manufacturers of South Africa (Naamsa). This creates a huge demand for motor spares. This article will outline how to start a motor spares business in South Africa, and the auto spare parts store business plan – PDF, Word and Excel.

Market Research

It’s important that you carry out market research before you start the motor spares business. Important decisions to make include deciding on the location of your business, the products you will offer, your target market and the size of your business. Understand your target market, and what kind of products they want. Identify and study your competition. Assess the competition at your proposed location. Through carefully studying your competition and customer trends you will find a gap in the market and also find ways to offer better services. You need all the information you can get to formulate a great customer experience model that won’t be easily contested. You should also have a good motor spares business plan before you venture into this business.

Location & Premises for Motor Spares Business

Location is a big factor in determining the success of your auto spare parts business. You should locate your auto parts store business in a place where there are many people with cars. It would be unwise to locate your motor spares store business in a rural area which has few car owners. There are several possible locations: shopping centres & malls, industrial areas, urban areas and in the CBD. People can always come to your motor spares store because of the quality service and the type of parts you provide.You will need premises which include the auto spares store, back offices, and a warehouse for your products.  Your premises should have sufficient parking space for your customers. Your auto spares business plan should cater for the costs of renting or buying premises.

Products for Auto Parts Store Business

The kind of auto parts products to sell will depend on your target market and business strategy. There are different niches you can target. Some specialise with spares for one make eg Toyota spare parts. Others may choose to specialise in one product line eg cooling systems, suspension parts, braking system, gearboxes, engines etc. Some motor spare businesses in South Africa focus on quick replacement parts eg. high pressure pumps, brake pads, shocks and shoes. You can also sell a variety of products without specialising in anything. The products which you can sell in your auto spare parts store include Suspension parts, Body Parts, Ball Joints , Belts , Oil Pumps , Tyres, Fuel Pumps , Clutch Plates , Pressure Plates , Fenders , Bonnets , Radiators , Ignition Plugs , Seat Covers , Mountings, Bushes & Shock Pads , Filters , Bearings, Discs & Hubs , Rubber Boots , Brake Pads & Brake Shoes , CV Joints, Shock Absorbers , Lubricants  and Batteries. The products can be sourced from local suppliers and international suppliers.

motor spares store business plan

Auto Spare Products

Staff & Management

The number of employees you need will depend on the size of your auto spares store business. The is need for finance/accounting personnel who will be responsible for all the day to day transaction accounting for the motor spares store business. This will include the tracking of all transactions and the management of cash flow, and ensuring there are enough funds available to meet the day to day payments.

Operations & logistics personnel are responsible for coordinating with suppliers and sourcing all the products which will be sold in the auto parts store, and arranging delivery of sold products to customers. They are also responsible for inventory control, ensuring that the shop has all the products in stock and in the right quantities, and determining when to place new orders. You also require cashiers and shop assistants. Your auto spare parts store business plan should cater for the salaries of your employees.

Knowledgeable staff members will add value to your team by helping the customers buy the correct products. There is a wide range of products available at motor spares shops, customers often get confused. Anyone can easily find themselves making small blunders by buying the wrong product. If you have inexperienced staff members on your team their training program should focus more on learning about the different products sold in the store so they are able to give informed advice to customers.

Cash Flow and Inventory Management

You should account for all the business cash inflows and cash outflows. Ensure that you have a good inventory management system, so that you don’t run out of products which are needed by clients. When starting your motor spares business, it maybe difficult to stock your store with all products because of limited capital. You can start with quick moving products, and ensure that you reinvest all the money into the business. With time, you will be able to stock a variety of products in your auto spares store. Profits will keep rolling into the business if you offer products which are needed by your target market.

Market for Auto Spares Business

There is a huge market for auto parts products in South Africa due to the increasing car ownership. Potential customers for your motor spares business include individuals, companies, organisations, transport companies, panel beating and spray painting companies, insurance companies, garages, mechanics and auto repair companies. It’s wise to establish a customer base which gives you repeat business. If you offer quality products at good prices, customers will always come back to your motor spares store. Build customer loyalty by giving discounts to your regular customers. Give quality service. Advertising is also required to attract more people to your auto spare parts store, thus boosting sales. Advertising can be via word of mouth, flyers & brochures, online advertising, social media marketing, print media, and sponsoring the community  amongst other ways.  

PRE-WRITTEN AUTO SPARE PARTS STORE BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the motor spares store business in South Africa, purchase our auto spare parts store business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the auto parts store business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a auto parts business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the motor spares business plan will lay out all the costs involved in setting up and running the motor spares business. The business plan is designed specifically for the South African market.

USES OF THE MOTOR SPARES BUSINESS PLAN (PDF, WORD AND EXCEL)

The motor spares store business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your auto spares store business
  • As a motor spares store project proposal
  • Assessing profitability of the auto spare parts stores business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE AUTO PARTS STORE BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the auto spares business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your auto parts store business in South Africa
  • Directory (Contact details of motor spares products suppliers)

The Auto Spare Parts Store Business Plan package consist of 4 files

  1. Auto Spare Parts Store Business Plan – PDF file (Comprehensive – 76 pages)
  2. Auto Parts Store Business Plan – Editable Word File (Comprehensive – 76 pages)
  3. Auto Spares Store Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 46 pages)
  4. Auto Spare Parts Store Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change eg the markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

GET THE AUTO SPARE PARTS STORE BUSINESS PLAN (PDF, WORD AND EXCEL) – R400 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 400 Rands.

We have several payment methods which you can use.

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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

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Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Instant EFT then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

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